An arrangement between countries where barriers to trade (tariffs, quotas, and other restrictions) are reduced or eliminated among the participating states. This preferential treatment aims to foster economic cooperation and integration. A prime instance is the European Union, which began as a trade accord before evolving into a more comprehensive political and economic entity.
Such arrangements are intended to stimulate economic growth through increased market access for producers, enhanced competitiveness, and economies of scale. They can also strengthen geopolitical ties between member nations. Historically, these structures have been used to promote regional stability, accelerate development, and provide a united front in international trade negotiations.
